What we paid into FG’s coffers in 5 years ―SPDC

OIL giant, Shell Petroleum Development Company (SPDC) has stated that it has contributed no less than $23 billion (N5.31 trillion) into the coffers of the Federal Government of Nigeria between 2013 and 2017.

The information was gleaned from the latest edition of Shell in Nigeria Briefing Notes (April 2018) unveiled and made available to TribuneOnline in Warri, Delta State by SPDC’s General Manager, External Relations, Mr. Igo Weli.

The reported says that in 2017 alone, Shell’s share of royalties and corporate taxes paid to the FG stood at approximately $1.1 billion (N333.33 billion), SPDC $0.4billion, SNEPCo $0.7 billion).

The monies, it added, were paid under the joint venture agreement between government-owned Nigerian National Petroleum Corporation (NNPC 55 per cent share), SPDC, (30 per cent share), Total E&P Nigeria LTD (10 per cent) and the Eni subsidiary Nigerian Agip Oil Company Ltd (5 per cent).

It further added that $1.9 billion was paid to the Niger Delta Development Commission (NDDC) since inception in 2002, while $228 million (N41.10 billion) went into the oil-bearing communities social investment funds for community-driven projects under the Global Memorandum of Understanding(GMoU).

The company also disclosed that in the spirit of local content policy and to develop manpower, Nigerian companies were awarded 94 per cent of Shell contracts in 2017 worth about $0.76 billion (N230.30 billion), while 631,000 barrels of oil equivalent per average daily production by Shell-operated ventures in Nigeria in 2017.

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The report says between 2012 and 2017, the Nigeria Liquefied Natural Gas Company Limited (NLNG) of which Shell contributes 25.6 per cent share, has committed over $45 million (N14.19 billion) to social investment projects in the Niger Delta region.

Shell, the report further states, is also contributing $49 million (15.36 billion) to the construction of the 34-kilometre Bonny-Bodo road project estimated to cost more than $190 million (N60 billion) as part of Federal Government socio-economic integration of the Niger Delta region.

The report also says Shell Nigeria Gas Ltd (SNG), a subsidiary, supplies natural gas, used for power generation and the processing by industries for the manufacturing of domestic products, to about 90 industrial and commercial customers, majority of which are resident in Ogun, Rivers and Abia states.

Being a major supplier of natural gas from its onshore and offshore fields to Nigeria Liquefied Natural Gas Company Ltd (NLNG) to the tune of about 25.6 per cent, the report disclosed that SPDC JV Adam VI power plant with the generating capacity of 650 megawatts, supplied approximately 15 per cent of the nation’s grid-connected electricity in 2017.

It added that since its inception in 2008, not less than 25.97 million megawatt-hours (MWh) of electricity has been delivered into the Nigerian national grid.

For the country to successfully unlock its natural gas potentials as well as develop growth projects for the domestic gas market, the company said it would require partnerships between the government and oil companies which have the ability to innovate, capacity to deliver major projects and the willingness to embrace long-term commitments